October, 17th 2016
Daily Market Commentary
- European stocks fell for the fourth time in five days amid renewed concern about the health of the global economy and speculation about central-bank policy.
- The world’s biggest central banks are bulking up their balance sheets this year at the fastest pace since 2011’s European debt crisis to boost lackluster economic recoveries with asset purchases that are supporting stock and bond prices. The 10 largest lenders now own assets totaling $21.4 trillion, a 10 percent increase from the end of last year.
- Metals: Gold: 1254.09 (+$3.06, +0.24%), Silver: 17.42 (-$0.01, -0.03%); Copper: 2.1130 (+0.12%); Zinc: 1.0249 (+0.09%)
- Energy: Crude: 50.27 (-0.16%); Brent: 51.98 (+0.06%); Nat Gas: 3.24 (-1.31%)
- Oil extended declines after U.S. producers increased drilling as the market contends with an overhang of crude inventories at the highest seasonal level in at least three decades.
- Gold rose after posting a three-week decline, the longest stretch in more than four months, as investors weigh the outlook for U.S. interest rates against signs of robust demand.
- Intercontinental Exchange Inc., which runs the daily London gold auction, will start a futures contract for the metal in the U.S. in February, jumping the gun on the London Metal Exchange which is also working on a London-focused product.
- Constellation Brands close to agreement to sell Canadian wine business to Ontario Teachers’ Pension Plan in deal valued at C$1b.
- Canada’s housing agency is raising the alarm over the country’s real estate sector, warning about a strong risk of problems on the horizon. (Globe and Mail)
- Rogers names former Telus chief Joseph Natale CEO as Guy Laurence steps down (Financial Post)
- SUPERVALU INC. today announced that it has entered into a definitive agreement whereby an affiliate of Onex Corporation will acquire SUPERVALU’s Save-A-Lot business for $1.365 billion in cash, subject to customary closing adjustments.
- Bank of America Corp., the second-biggest U.S. lender by assets, said third-quarter profit rose 7.3 percent as expenses fell and revenue from fixed-income trading was better than analysts predicted.
- Apple Inc. has drastically scaled back its automotive ambitions, leading to hundreds of job cuts and a new direction that, for now, no longer includes building its own car, according to people familiar with the project.
- Deutsche Bank said to explore shrinking its U.S. operations
- Asian stocks outside Japan declined toward the lowest level in a month as casino operators tumbled after China detained employees of Australia’s Crown Resorts Ltd.
- Iran, OPEC’s third-biggest member, plans to boost its oil output to a level of 4 million barrels a day this year, potentially complicating the producer group’s plan to cut supply in an effort to prop up prices.
- SSE Plc, Britain’s second-biggest energy supplier, agreed to sell a 16.7 percent stake in its Scotia Gas Networks distribution business to the Abu Dhabi Investment Authority. The 621 million-pound ($755 million) sale will be completed by the end of this month, SSE said Monday in an e-mailed statement.
- Japan’s government is set to raise 416 billion yen ($4 billion) from the initial share sale of state-owned Kyushu Railway Co. after pricing the stock at the top end of a marketed range. The shares will be sold at 2,600 yen each, compared with the offered range of 2,400 yen to 2,600 yen, according to a filing on Monday.
- The recent rally in European companies most dependent on the economy is unwarranted given the risks in global growth. That’s the message that firms including JPMorgan Chase & Co. and Morgan Stanley are sending, after valuations of cyclical companies reached a two-year high relative to defensive bets.
*All information is taken from Bloomberg, unless otherwise noted.